Non-consolidated Financial Results
for the Fiscal Year Ended December 31, 2021
[Japanese GAAP]
February 10, 2022
Company name: Nippon Aqua Co., Ltd.
Code number: 1429 (listed on the Tokyo Stock Exchange)(URL: http://www.n-aqua.jp)
Representative: Fumitaka Nakamura, President and Representative Director
Contact: Mitsuharu Yamada, General Manager of Finance and Accounting
Phone: +81-3-5463-1117
Scheduled date of Ordinary General Meeting of Shareholders: March 25, 2022
Scheduled date of dividend payout: March 28, 2022
Scheduled date of filing annual securities report: March 25, 2022
Supplementary materials on financial results prepared: Yes
Financial results briefing held: Yes (for institutional investors and analysts)(Figures are rounded down to the nearest million yen.)
1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2021 (January 1, 2021December 31, 2021)(1) Financial Results(Percentage figures indicate year-on-year changes.)
Net sales

Operating profit

Ordinary profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

Fiscal year ended
December 31, 2021

23,9039.3

1,412(25.5)

1,429(25.2)

953(29.0)

Fiscal year ended
December 31, 2020

21,872

2.4

1,896

(0.7)

1,911

0.1

1,342

5.3

Diluted earnings per
share

Return on equity

Ratio ofordinary profit tototal assets

Ratio ofoperating profit to
net sales

Yen

Yen

%

%

%

29.52

－

12.2

8.3

5.9

41.57

41.56

18.5

12.2

8.7

Basic earnings
per share
Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2020

(2) Financial Position
Total assets
As of December 31, 2021
As of December 31, 2020

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

18,27916,021

7,951
7,638

43.5
47.7

246.09236.46[Reference] Shareholders’ equity: As of December 31, 2021: 7,951 million yen
As of December 31, 2020: 7,638 million yen

(3) Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents
at end of period

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

520

(355)

109

1,926

694

(609)

(311)

1,651

Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2020

2. Dividends
Dividend per share
End of 1stquarter
Fiscal year ended
December 31, 2020
Fiscal year ended
December 31, 2021
Fiscal year ending
December 31, 2022
(forecast)End of
2ndquarter

End of
3rdquarterYear-end

Total
dividends(annual)

Total

Payout ratio

Ratio ofdividends to
net assets

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

－

0.00

－

20.00

20.00

646

48.1

8.9

－

0.00

－

20.00

20.00

646

67.7

8.3

－

0.00

－

22.00

22.00

48.4

3. Financial Forecasts for the Fiscal Year Ending December 31, 2022 (January 1, 2022-December 31, 2022)(Percentage figures indicate year-on-year changes.)
Net sales
Six months ending
June 30, 2022
Fiscal year ending
December 31, 2022

Operating profit

Ordinary profit

Basic earnings
per share

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

Yen

12,053

12.5

886

167.2

886

164.3

611

186.2

18.92

26,490

10.8

2,121

50.2

2,121

48.4

1,470

54.1

45.50

* Notes(1) Changes in accounting policies, changes in accounting estimates and restatements(i) Changes in accounting policies due to revisions of accounting standards, etc.: No(ii) Changes in accounting policies other than (i): No(iii) Changes in accounting estimates: No(iv) Restatements: No(2) Number of issued shares (common shares)(i) Number of issued shares at end of period under review (including treasury shares)
As of December 31, 2021
34,760,000 shares
As of December 31, 2020
34,760,000 shares(ii) Number of treasury shares at end of period under review
As of December 31, 2021
2,449,128 shares
As of December 31, 2020
2,457,628 shares(iii) Average number of shares during period under review
Fiscal year ended December 31, 2021
32,307,845 sharesFiscal year ended December 31, 2020
32,299,492 shares* Financial results are not subject to audit by certified public accountants or audit corporations.
* Notes concerning appropriate use of financial forecasts and other significant matters
Financial forecasts and other forward-looking statements in this release are based on data currently available to theCompany and certain assumptions that the Company believes are reasonable. They are not intended as a guaranteethat the Company will achieve such results. Actual results may differ materially from them for various reasons. For
details of the assumptions used in the forecast of financial results and cautionary notes concerning appropriate use of
the financial forecasts, please refer to “(4) Future Outlook” on page 3 of the Attachment.

Contents of Attachment
1. Overview of Operating Results, Etc. ................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year Under Review ................................................. 2(2) Overview of Financial Position for the Fiscal Year Under Review ................................................ 2(3) Overview of Cash Flows for the Fiscal Year Under Review ........................................................... 3(4) Future Outlook ................................................................................................................................ 3
2. Basic Policy on Selection of Accounting Standards ............................................................................ 6
3. Financial Statements and Primary Notes ............................................................................................. 7(1) Balance Sheet .................................................................................................................................. 7(2) Income Statement ............................................................................................................................ 9(3) Statement of Changes in Equity .................................................................................................... 10(4) Cash Flow Statement ..................................................................................................................... 12(5) Notes to Financial Statements ....................................................................................................... 13(Notes on Going Concern Assumption) ................................................................................... 13(Segment Information, Etc.) ..................................................................................................... 13(Equity in Earnings (Losses) of Affiliates, Etc.) ...................................................................... 13(Per Share Information) ............................................................................................................ 14(Important Subsequent Events) ................................................................................................ 14

1

1. Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Fiscal Year Under Review
During the fiscal year ended December 31, 2021, the Japanese economy continued to be heavily affected by the
spread of COVID-19. As thorough measures for infection prevention and vaccinations were promoted, various
policies took effect and overseas economies improved. Signs of improvement were thus seen in the economy.
However, as COVID-19 variants continue to spread unabated, the outlook of the economy remains unpredictable.
Amid this environment, under the basic policy of tackling the “decarbonization” issue in housing and buildings
by promoting energy conservation in homes through the innovation of insulating material technologies and recycling
technologies, the Company proactively made efforts to win orders in each division by taking advantage of the productappeal of highly-airtight and highly-insulated AQUA FOAM and the strength of our nationwide construction
network.
As a result, regarding the financial results of the Company in the fiscal year under review, net sales increased by
9.3% year on year to 23,903 million yen. Due to the rise in urethane raw material prices, cost of sales increased by
15.7% year on year to 19,163 million yen. Consequently, operating profit declined 25.5% from a year earlier to 1,412
million yen and ordinary profit fell 25.2% year on year to 1,429 million yen. Profit totaled 953 million yen,decreasing 29.0% from a year earlier.
As part of the Company’s initiatives to improve profitability, in our mainstay Single-family Homes Division, we
introduced the newly-developed AQUA FOAM LITE, which reduces raw material usage by approximately 30%, inJune of the fiscal year under review, striving to improve construction work profit as urethane raw material prices
remained high.
The financial results by item are listed below.
1) Insulating materials for single-family homes
In the single-family homes market, there were signs of a recovery in monthly housing starts and demand for
AQUA FOAM, an insulating material essential for highly-airtight and highly-insulated housing, increased
amid discussions on whether it should be mandatory for houses to meet energy efficiency standards in orderto achieve a decarbonized society. As a result, sales of the Single-family Homes Division increased by 5.9%
year on year to 13,185 million yen.
2) Insulating materials for buildings
In the buildings market, sales of the Buildings Division increased by 13.4% year on year to 5,499 million yen,
thanks to the efforts to carry out multiple construction work that includes insulation-installing, fireproofing
and waterproofing work.
3) Product sales
Sales of raw materials, machinery, etc. increased by 14.0% year on year to 5,217 million yen.
(2) Overview of Financial Position for the Fiscal Year Under Review(Total assets)
Total assets totaled 18,279 million yen as of December 31, 2021, up 2,257 million yen, or 14.1%, from the end of
the previous fiscal year.
(Current assets)
Current assets totaled 13,591 million yen as of December 31, 2021, up 2,121 million yen, or 18.5%, from the endof the previous fiscal year. Key factors contributing to this increase include increases of 274 million yen in cash anddeposits, 1,279 million yen in accounts receivable - trade, and 806 million yen in accounts receivable - other, partially
offset by decreases of 125 million yen in merchandise, and 157 million yen in work in process.
(Non-current assets)
Non-current assets totaled 4,688 million yen as of December 31, 2021, up 135 million yen, or 3.0%, from the endof the previous fiscal year. Key factors contributing to this increase include increases of 172 million yen in buildings
due to the completion of the Sendai recycling plant, and 122 million yen due to the acquisition of machinery andequipment, partially offset by a decrease of 207 million yen in assets due to depreciation.
2

(Total liabilities)
Liabilities totaled 10,327 million yen as of December 31, 2021, up 1,944 million yen, or 23.2%, from the end of
the previous fiscal year.
(Current liabilities)
Current liabilities totaled 10,166 million yen as of December 31, 2021, up 1,980 million yen, or 24.2%, from theend of the previous fiscal year. Main factors contributing to this increase include increases of 1,215 million yen inaccounts payable - trade, and 800 million yen in short-term borrowings, partially offset by a decrease of 139 million
yen in accrued consumption taxes.
(Non-current liabilities)
Non-current liabilities totaled 161 million yen as of December 31, 2021, down 36 million yen, or 18.4%, fromthe end of the previous fiscal year. Key factors contributing to this decrease include a decrease of 33 million yen in
long-term borrowings.
(Net assets)
Net assets totaled 7,951 million yen as of December 31, 2021, up 313 million yen from the end of the previous
fiscal year. Key factors contributing to this increase include an increase of 953 million yen in retained earnings due
to profit, partially offset by the decrease of 646 million yen in retained earnings due to dividend payouts.

(3) Overview of Cash Flows for the Fiscal Year Under Review
Cash and cash equivalents (hereinafter “net cash”) in the fiscal year ended December 31, 2021 amounted 1,926
million yen (1,651 million yen in the previous fiscal year), increasing 274 million yen from the end of the previous
fiscal year.
(Cash flows from operating activities)
Net cash from operating activities increased 520 million yen in the fiscal year under review, compared to a 694
million yen increase in the previous fiscal year. This was due mainly to increases in net cash driven by 1,428 million
yen in profit before income taxes, 207 million yen in depreciation, a 299 million yen decrease in inventories, and a
1,215 million yen increase in trade payables, and decreases in net cash, driven by a 1,343 million yen increase intrade receivables, a 759 million yen increase in accounts receivable - other, and 438 million yen in income taxes
paid.
(Cash flows from investing activities)
Net cash from investing activities decreased 355 million yen in the fiscal year under review, compared to a 609
million yen decrease in the previous fiscal year. This was due mainly to purchase of property, plant and equipment
totaling 327 million yen and purchase of intangible assets totaling 27 million yen.
(Cash flows from financing activities)
Net cash from financing activities increased 109 million yen in the fiscal year under review, compared to a 311
million yen decrease in the previous fiscal year. This was due mainly to 646 million yen in dividends paid and 33
million yen in repayments of long-term borrowings, partially offset by net increase in short-term borrowings of 800
million yen.
(4) Future Outlook
Going forward, the Japanese economy is expected to gradually recover, owing to the promotion of measures toprevent the spread of COVID-19 and vaccinations, as well as improvements in overseas economies. However, thedownside risk to the Japanese economy could heighten depending on trends in COVID-19 infections in Japan andoverseas, and their impact via the supply chain. Under such circumstances, in preparation for the continued highprices of urethane raw materials, the Company has revised the order price in both the Single-family Homes Divisionand the Buildings Division, in order to control the downside risk to our financial results. Other specific strategies are
as follows:31. Companywide Measures after the Issuance of “Priority Preventative Measures” on January 21, 2022
(1) Insulation Installing WorkWe plan to comply with any request or policy by administrative authorities and work closely with originalcontractors on insulation-installing work by taking thorough counter-infection measures. We aim to ensure
thorough safety and infection prevention for construction workers and maintain existing measures.
(2) Prevention of the Spread of COVID-19 Infections at Offices(i) We notify employees to ensure wearing masks.
(ii) We have installed sanitizing equipment at various locations and notify users and employees to ensurewashing hands and sanitizing hands.
(iii) We frequently disinfect places that are touched by multiple people.
(iv) We have employees check their temperature and physical condition before reaching the office and report
it every day.
(v) We urge unwell employees to take a rest and immediately send back employees who fall sick while atwork.
(3) Execution of Duties and Supervision
Important decisions are made and execution duties are supervised as usual through meetings, including thoseof the Board of Directors, by fully utilizing telephone or video conferencing systems, in order to prevent infection.
2. Outlook by Item
(1) Insulating materials for single-family homes
In the single-family homes market, the “Children’s Future Housing Support Project (2021 Supplementary
Budget)” system has been established with the aim of creating a stock of housing equipped with energy-savingfeatures. Under this system, energy-saving new residential housing that qualify as ZEH (zero energy houses) will
be provided a grant of 1 million yen per house. Accordingly, the Company will strive to increase its revenue by
providing insulation solutions that meet the ZEH standards by combining the highly-airtight and highly-insulated
AQUA FOAM LITE (wall) with the urethane recycled product AQUA BLOW (ceiling) that promotes
decarbonization.
(2) Insulating materials for buildings
In the buildings market, although there have been delays in construction work due to the impact of COVID19, construction will begin on the delayed sites in this fiscal year. Under such circumstances, we will aim toincrease our revenue by carrying out multiple construction work that includes insulation-installing andfireproofing work, and strengthening our construction capabilities. In the buildings market, due to disruption of
the supply chain, the tight supply of urethane raw materials is becoming more apparent. Nonetheless, theCompany has continued its distributed procurement practice of purchasing materials from North American,
Chinese and Japanese manufacturers in order to control the rise in procurement prices, and has strived to eliminate
any impact on insulation-installing by implementing initiatives to diversify its supply routes.
(3) Waterproofing Division
In September 2020, the Company entered the market for the waterproofing of single-family homes andbuildings via a new product, the ultrarapid-hardening waterproofing Aquahajikun. Aquahajikun is awaterproofing material that uses polyurea as its raw material. In addition to having a short construction period
due to ultrarapid-hardening and a long-life properties with a 15-year reference service life, it has obtained theflying sparks certification as stipulated in the Building Standards Act. The flying sparks certification aims toprevent fire from spreading in the event of a fire, and is applicable to waterproofing work of roofs, verandas andbalconies of houses and buildings in fire and quasi-fire prevention districts. There is demand for roof and balcony
waterproofing work for single-family homes, and we have received inquiries from major shared housing
construction companies with respect to shared corridors, verandas, etc. The scope of demand for buildings is also
extensive, and we have sold products for both new and renovated properties, such as roofs of factories and railway
station buildings, roofs of apartments, and ramps in multistory parking lots. Going forward, we will continue toincrease revenue by strengthening our construction capabilities.
4(4) New Investments in Environmental (Decarbonization) Initiatives
Under the Ministry of the Environment’s National Permit System (Certification No. 253), we reduce CO2
emissions generated from industrial waste treatment by collecting urethane scraps from construction sites and recommercializing them as blowing insulating materials.
In order to advance initiatives aimed at reusing urethane insulating materials and further strengthening efforts
to reduce CO2 emissions, we have newly established the following recycling plants.
(i) The Sendai recycling plant, located inside the Sendai branch office premises (Miyagino-ku, Sendai), wascompleted in September 2021, and the expanded lines commenced operations in October.
(ii) Blowing manufacturing equipment was installed at the Kyushu recycling plant in September 2021, andcommenced operations in October.
We expect to reduce CO2 emissions by 500 tons per year (an increase of 200 tons year on year) with thecommencement of operations of the new recycling plants.
3. Full-year Financial Forecasts for the Fiscal Year Ending December 31, 2022
(1) Financial Forecasts for the Fiscal Year Ending December 31, 2022
The financial forecasts for the fiscal year ending December 31, 2022 are as stated in the summary information“3. Financial Forecasts for the Fiscal Year Ending December 31, 2022.” In addition, the financial forecasts anddividend forecasts for the fiscal year ending December 31, 2023 are as described in the “Plan to Meet theContinued Listing Criteria for New Market Segments” announced on December 20, 2021.
(2) Sustainability Initiatives
As for sustainability initiatives, we have set our management philosophy as “Contributing to society bycreating a housing environment that is friendly to people and the earth,” and our vision as “We exist to reduce
total energy demand through innovation in insulation technology, prevent global warming, and at the same time,
help people lead healthy and comfortable lives.”
Insulating and heat-shielding materials such as AQUA FOAM are indispensable to society, people’s lives, andthe global environment. By increasing the installation rate of the highly-airtight and highly-insulated AQUA
FOAM, which improves the energy-saving performance of houses, we will reduce residential CO2 emissions(energy consumption) and realize energy-saving housing. In addition, by working on urethane recycling topromote decarbonization, we aim to realize a society that supports the healthy, comfortable, and happy lives of
its residents, and can sustain itself using environmentally-friendly renewable energy without emitting CO2.
(3) Initiatives to Augment our Construction Capabilities
The Company’s growth engine lies in its “construction capabilities,” and developing and augmenting theconstruction system is a management issue shared by the Single-family Homes, Buildings, and Waterproofing
Divisions. Therefore, since last year, we have been implementing support, backup, and follow-up policies tosolve the problems faced by certified contractors. The specific policies are as follows:(1) Provide support and backup to alleviate the shortage of skilled workers(2) Rent a fireproof warehouse to stock urethane raw materials(3) Provide equipment support by transferring blowing equipment and construction trucks

52. Basic Policy on Selection of Accounting Standards
The Company prepares its financial statements based on Japanese GAAP in order to ensure the compatibility offinancial statements by term. With respect to the future adoption of International Financial Reporting Standards(IFRS), the Company plans to carefully consider the adoption, taking into account the trend regarding the accounting
standards in Japan.

6

3. Financial Statements and Primary Notes(1) Balance Sheet(in thousand yen)
As of December 31, 2020
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
MerchandiseWork in process
Raw materials and supplies
Advance payments to suppliers
Prepaid expenses
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Structures, net
Machinery and equipment, net
Vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Total property, plant and equipment
Intangible assets
Leasehold interests in land
SoftwareLease assets, net
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Long-term loans receivable from
employees
Distressed receivables
Long-term prepaid expenses
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

As of December 31, 2021

1,651,998
1,089,406
4,514,177
359,656
247,818
644,105
31,094
58,3472,879,904
13,937(21,051)
11,469,395

1,926,921
1,153,530
5,793,226
233,672
89,907628,382
42,73752,727
3,686,345
17,523(33,794)
13,591,180

2,124,868
229,626
89,4042,413
30,247
1,611,699
44,6994,132,960

2,209,592
198,518
133,626
6,692
26,728
1,611,699
76,537
4,263,394

15,00050,67147,338280
113,291

15,00048,67747,564
259
111,501

1,064
16,988
560
1,401

1,676
16,988560
2,229

66,973
15,990174,640
85,935
7,827(65,085)
306,296
4,552,548
16,021,943

67,643
16,676
176,651
86,643
11,385(67,251)
313,2024,688,097
18,279,278

(in thousand yen)
As of December 31, 2020
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

8

As of December 31, 2021

4,840,273
2,300,000
33,40025,852
280,363
189,639
211,304
182,820
15,463
17,12921,23468,8038,186,285

6,055,946
3,100,000
33,40037,866262,363
187,685
254,804
43,263
41,171
27,615
21,738100,863
10,166,719

66,60054,88339,08636,809197,378
8,383,663

33,20080,24539,314
8,367
161,127
10,327,846

1,903,649

1,903,649

1,883,649
402
1,884,051

1,883,649
1,388
1,885,037

5,059,944
5,059,944(1,209,153)
7,638,492

5,367,699
5,367,699(1,204,971)
7,951,415

(213)

15

(213)
7,638,279
16,021,943

15
7,951,431
18,279,278

(2) Income Statement(in thousand yen)
Fiscal year ended
December 31, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Insurance claim income
Subsidy income
Outsourcing service income
Penalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Settlement package
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit9

Fiscal year ended
December 31, 2021

21,872,218
16,562,143
5,310,075
3,413,705
1,896,370

23,903,421
19,163,529
4,739,891
3,327,800
1,412,091

10,113
11,741
5,020
4,056
5,350
10,47946,76220,80012,416－
6,571－
10,10049,888

10,18920,894110
31,194
1,911,938

9,873
22,77499
32,747
1,429,232

4,623
4,623

100
100

1,182
10,23011,412
1,905,148
528,392
34,061
562,453
1,342,695

1,166
－
1,166
1,428,165
476,475(2,111)
474,363
953,802(3) Statement of Changes in Equity
Fiscal year ended December 31, 2020 (from January 1, 2020 to December 31, 2020)(in thousand yen)
Shareholders’ equity
Capital surplus
Legal capital
Other capitalsurplussurplus1,883,369
140

Share capital
Balance at beginning of period
Changes during period
Dividends of surplus
Issuance of new shares - exerciseof share acquisition rights
Disposal of treasury shares
ProfitNet changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

1,903,369

280

280

280
1,903,649

280
1,883,649

280
262

262

262
402

542
1,884,051
Valuation andtranslation
adjustments

Shareholders’ equity
Retained earnings

Balance at beginning of period
Changes during period
Dividends of surplus
Issuance of new shares - exerciseof share acquisition rights
Disposal of treasury shares
ProfitNet changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Other retained
Treasury sharesearnings
Retained earnings
brought forward
4,266,287(1,210,137)(549,038)

984
1,342,695

793,657
5,059,944

984(1,209,153)

10

Total capitalsurplus1,883,509

Total
shareholders’equityValuationdifference on
available-forsale securities

6,843,029

4

Total net
assets6,843,033(549,038)(549,038)

560

560

1,246
1,342,695

1,246
1,342,695

795,4637,638,492

(217)

(217)

(217)
(213)

795,2457,638,279

Fiscal year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)(in thousand yen)

Share capital
Balance at beginning of period
Changes during period
Dividends of surplus
Issuance of new shares - exerciseof share acquisition rights
Disposal of treasury shares
ProfitNet changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

1,903,649－
1,903,649

Shareholders’ equity
Capital surplus
Legal capital
Other capitalsurplussurplus1,883,649
402

Total capitalsurplus1,884,051

986

986

986
1,388

986
1,885,037－
1,883,649

Valuation andtranslation
adjustments

Shareholders’ equity
Retained earnings

Balance at beginning of period
Changes during period
Dividends of surplus
Issuance of new shares - exerciseof share acquisition rights
Disposal of treasury shares
ProfitNet changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Other retained
Treasury sharesearnings
Retained earnings
brought forward
5,059,944(1,209,153)(646,047)

4,182
953,802

307,754
5,367,699

4,182(1,204,971)

11

Total
shareholders’equityValuationdifference on
available-forsale securities

7,638,492(213)

Total net
assets7,638,279(646,047)(646,047)

－

－

5,168
953,802

5,168
953,802

312,922
7,951,415

229

229

229
15

313,151
7,951,431

(4) Cash Flow Statements(in thousand yen)
Fiscal year ended
December 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Insurance claim income
Subsidy income
Gain from business consulting fee
Penalty income
Loss (gain) on sale and retirement of noncurrent assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in accounts receivable other
Other, net
SubtotalInterest and dividends received
Proceeds from insurance income
Subsidies received
Proceeds from fiduciary obligation fee
Proceeds from penalty income
Interest paid
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of finance lease obligations
Proceeds from sale and leaseback
transactions
Proceeds from issuance of shares
Dividends paid
Net cash provided by (used in) financing
activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period

12

Fiscal year ended
December 31, 2021

1,905,148
186,501

1,428,165
207,746

58,73014,909(350)(10,113)
10,189(11,741)(5,020)(4,056)(5,350)503(20,850)
9,873(12,416)－(6,571)－(3,440)1,066(586,284)
426,818
225,325(1,343,172)
299,617
1,215,672(289,743)(759,850)(240,491)
1,656,120
10,113
11,741
5,020
4,056
5,350
(10,189)(988,024)(105,379)
929,315
20,85012,416－
6,571－(9,873)(438,778)

694,189

520,501(652,883)(327,920)

41,806383(33,329)(277)
35,481(27,652)(281)
112(609,202)(355,358)

300,000

800,000

100,000(136,800)(26,114)－(33,400)(25,852)－

15,080560(549,038)－(646,047)(311,392)

109,780(226,405)

274,922

1,878,403

1,651,998

1,651,998

1,926,921

(5) Notes to Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Segment Information, Etc.)[Segment Information]
No disclosure is made about segments as the Company operates in only one business segment of heatinsulation work and related services.
[Related Information]
Fiscal year ended December 31, 2020
Information by product or service(in thousand yen)
Insulating materials
Insulating materials
for single-family
for buildings
homes

Product sales

Net sales to external
12,448,085
4,848,391
4,575,742
customers(Note) Product sales include 650,631 thousand yen of machinery sales.

Total
21,872,218

Fiscal year ended December 31, 2021
Information by product or service(in thousand yen)
Insulating materials
Insulating materials
for single-family
for buildings
homes

Product sales

Net sales to external
13,185,835
5,499,852
5,217,734
customers(Note) Product sales include 1,098,030 thousand yen of machinery sales.

Total
23,903,421(Equity in Earnings (Losses) of Affiliates, Etc.)
No disclosure is made about equity in earnings (losses) of affiliates as the affiliates owned by the Company
are insignificant in terms of profit and surplus standards.

13

(Per Share Information)
Fiscal year ended
December 31, 2020
236.46 yen

Fiscal year ended
December 31, 2021
246.09 yen

Basic earnings per share

41.57 yen

29.52 yen

Diluted earnings per share

41.56 yen

Net assets per share－ yen(Notes) 1. Diluted earnings per share for the fiscal year ended December 31, 2021 is not stated as there are no
dilutive shares.
2. The basis for calculating basic earnings per share and diluted earnings per share is as shown below.
Fiscal year ended
Fiscal year ended
Item
December 31, 2020
December 31, 2021

Basic earnings per share
Profit (thousand yen)

1,342,695

953,802－－

Profit relating to common shares(thousand yen)

1,342,695

953,802

Average number of common shares
during the period under review (shares)

32,299,492

32,307,845

Increase in number of common shares(shares)

1,664－[Of which, share acquisition rights](shares)[1,664]－

Amount not attributable to commonshareholders (thousand yen)

Diluted earnings per share(Important Subsequent Events)
Not applicable.

14